Purchase Intention Towards L&T Green Bonds Among Indian Retail Investors: An ESG Factors and TPB Framework Analysis

Ms. JAYAVARSHINI T H B 1, Dr. Dr. A.ELAIYARAJA MBA., PhD 2

1Student, Department of MBA, Panimalar Engineering College,Chennai – 6000123

2Assistant Professor, Department of MBA, Panimalar Engineering College,Chennai – 6000123

ABSTRACT:Environmental, Social, and Governance (ESG) investing has gained increasing attention in recent years as investors seek to align financial decisions with sustainability and responsible business practices. This study examines the influence of ESG factors on the investment intention of Indian retail investors through the lens of the Theory of Planned Behaviour (TPB). In this study, the TPB framework is adapted by aligning attitude with environmental factors, subjective norms with social factors, and perceived behavioral control with governance factors. The research adopts a quantitative approach and uses survey-based primary data collected from retail investors in India. Structural Equation Modeling (SEM) is employed to examine the relationships among ESG dimensions and investment intention. The findings indicate that environmental, social, and governance factors all have a significant positive influence on investment intention, with governance emerging as the strongest predictor. The results also confirm that the proposed model provides a good fit to the data and supports the relevance of the adapted TPB framework in explaining ESG-based investment behavior. The study contributes to the growing literature on sustainable finance by offering empirical evidence from the Indian context and provides useful insights for investors, policymakers, and financial institutions seeking to promote responsible investment practices.

KEY WORDS:ESG investing, investment intention, retail investors, Theory of Planned Behaviour, sustainable finance, environmental factors, social factors, governance factors, SEM, India